I just wanted to run this by someone else to ensure my thinking is correct (especially with the new $500 fine for EITC).
I have a couple of clients who live together, a grandmother, her daughter, and the grandchildren. Last year the mother claimed the kids for EITC, however the grandmother also met all the criteria to claim the EITC and HoH if the mother did not claim the children. They would get back about $4k extra by doing it this way. (Note: The non-custodial father claimed the dependency exemption and CTC.)
Is there going to be an issue if I file two 1040X returns; one for the mother to remove the children EITC claim and another for the grandmother to add the children for HoH and EITC? I don't see a problem with this, but I just want to double check with someone else because of the increased EITC scrutiny.
I already have a signed 7216 release from both of them so I can collaborate with both of them.
I have a couple of clients who live together, a grandmother, her daughter, and the grandchildren. Last year the mother claimed the kids for EITC, however the grandmother also met all the criteria to claim the EITC and HoH if the mother did not claim the children. They would get back about $4k extra by doing it this way. (Note: The non-custodial father claimed the dependency exemption and CTC.)
Is there going to be an issue if I file two 1040X returns; one for the mother to remove the children EITC claim and another for the grandmother to add the children for HoH and EITC? I don't see a problem with this, but I just want to double check with someone else because of the increased EITC scrutiny.
I already have a signed 7216 release from both of them so I can collaborate with both of them.
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